Intraday Jackpot Calls team has given information about demat and trading a/c in nse share market for beginners. This will be usefull for people who plan to start trading in stock market. This will help them to understand the requirments for opening the demat cum trading account.
Trading A/c in Nse
Whenever a company lists its share in a nse stock market, all those shares are available for trading at Nse Market.
Now a days in Modern world maximum trades in nse market were conducted electronically using computers, laptops, mobiles phones, mobile tab etc. Still there are lot traders who also place order through their brokers.
If you are trading online, you have to enter your username and password so that the system verifies you and places the order on your behalf in nse market. A account is created on your name and you are given a authorization to do transactions of buying and selling in the market. This account is called the trading account. You will have to register for a trading account with a stock broker or a firm and he will provide you these details. Each account comes with a unique trading username and password that you will have to use every market day to trade in Nse market.
Demat A/c for Nse
A Demat a/c is same for your stocks / shares like a normal saving bank account for your money. It can also be called as a account that holds all your stocks/shares in electronic form in the share market. Demat account holds the certificates of your financial instruments like shares, bonds, government securities, mutual funds and exchange traded funds (ETFs). You cannot trade without holding a Demat a/c in Nse market.
In simple term, a Demat account is used as a bank where shares bought are deposited in the account and taken back when those share are sold in the market.
How to Open a Demat Cum Trading a/c
- You will also need documents of Proof of Address and Proof of Identity like Pan card/ Driving License/ IT returns, electricity bill/ telephone bill/ Votor Id card etc
- Also note that while opening a Demat a/c please read the all the terms and conditions, brokerage charges, rules and regulation before you sign the form.
- You also may have to pay so monthly or annual maintenance free for the demat a/c.
- You will also need to give a cheque payment, this money will be deposited in your a/c, so that when you buy stocks, it will be deducted from that money.
- To open a demat a/c you should have a 2 Passport size photos.
- You will have to also filled KYC forms while filling your Demat cum trading A/c forms